Though U.S. equities broke their three-day winning streak Thursday, analysts are still optimistic that we are not necessarily headed for a recession.
The recent rally is a signal to investors that it is possible to bounce back from U.S. market declines experienced earlier this year, noted John Stoltzfus, chief market strategist at Oppenheimer.
"It certainly works against the grain of the thought that we're going into a recession," he told CNBC's "Squawk on the Street" on Thursday.
Pointing to growth in the euro zone economy in the last three months of 2015, Stoltzfus also noted that Europe is beginning to start a recovery process.
Another major sign for investors to watch is how the U.S. consumer is doing and whether international developments ultimately undermine the domestic story, said Michelle Girard, chief U.S. economist at RBS, in the same "Squawk on the Street" segment.
"The good news is, so far, the U.S. economy is showing a lot of resilience," said Girard. "I think when we see numbers like we saw with retail sales last week, that sets the stage for the better performance in the equity market."